§ Mr. Tom Boardmanasked the Secretary of State for Trade and Industry whether he will make a further statement on the situation arising from the failure of the Vehicle and General Insurance Company Limited.
§ Mr. John DaviesI have appointed Mr. Michael Eastham, Q.C., and Mr. R. T. M. McPhail, C.A., under Section 165(b) of the Companies Act, 1948, as inspectors to investigate the affairs of the company By virtue of Section 166 the inspectors will be empowered automatically to investigate the affairs of any subsidiary of the company if they think it necessary for the purposes of their investigation of the affairs of the holding company.
I am proposing to discuss with the British Insurance Association as soon as possible means by which they can contribute towards giving greater confidence to the public who take out policies of motor insurance.
Finally, I am, as I told the House on 2nd March, examining the adequacy of the controls applicable to insurers under the existing legislation and of the procedures and staffing arrangements for administering these controls. Among other things I shall be considering whether 139W amending legislation is desirable to enable inquiries into insurance companies under Section 109 of the Companies Act, 1967, to be carried out by firms of accountants. In my examination I shall, of course, wish to take into account the results of discussion with the industry.